Page 120 - Low Carbon Development in China and India
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2.2
Figure 2.6 Comparison of Per Capita GDP and Per Capita Local Low carbon Expenditure in China in
2011, excluding Beijing, Tianjin, Shanghai, Ningxia, Qinghai, Tibet, and Inner Mongolia
Source: Based on the China Statistical Yearbook 2012
Notes: (1) The population refers to the year-end population; (2) Low carbon expenditure includes: energy
conservation and environmental protection, agriculture, forestry and water affairs, transportation, land
resources and meteorological services, and urban and rural community affairs. Since for construction
expenditure, the statistical scope in the China Statistical Yearbook 2012 is the housing security
expenditure, we cannot separate the construction input (urban planning) and social security input. So we
will not include construction expenditure in the low carbon expenditure in this chapter; (3) Low carbon
expenditure of major cities below the provincial level is excluded in this analysis due to data inadequacy.
2.3 Fiscal Instruments for Low Carbon Financing
in Cities
The bottleneck faced by the local governments in financing low
carbon growth may be alleviated through reform and innovation
of fiscal and financial instruments. This section focuses on how the
existing fiscal instruments of China can help local governments fund
low carbon growth in a better way. It will place emphasis on two
aspects: (i) the reform (greening) and innovation of the existing fiscal
instruments, which explore viable low carbon financing available to
the local governments in view of the types of fiscal policies; and (ii) the
management of the existing fiscal revenue and reform of the existing
distribution policies (including the fiscal expenditure of the Central
and local governments and transfer payment, etc.), which deals with
the low carbon financing from the perspective of the efficiency and
direction of the use of the fiscal revenue.
The former aspect aims to increase the funds available for low
carbon growth, while the latter aspect can not only increase such
funds, but also improve the efficiency of its use. As fiscal instruments,
both aspects can effectively provide additional, stable, and effective
funds for the local governments in their low carbon growth strategy.
Chapter 2 Innovative Financing for Low Carbon Development 85
Figure 2.6 Comparison of Per Capita GDP and Per Capita Local Low carbon Expenditure in China in
2011, excluding Beijing, Tianjin, Shanghai, Ningxia, Qinghai, Tibet, and Inner Mongolia
Source: Based on the China Statistical Yearbook 2012
Notes: (1) The population refers to the year-end population; (2) Low carbon expenditure includes: energy
conservation and environmental protection, agriculture, forestry and water affairs, transportation, land
resources and meteorological services, and urban and rural community affairs. Since for construction
expenditure, the statistical scope in the China Statistical Yearbook 2012 is the housing security
expenditure, we cannot separate the construction input (urban planning) and social security input. So we
will not include construction expenditure in the low carbon expenditure in this chapter; (3) Low carbon
expenditure of major cities below the provincial level is excluded in this analysis due to data inadequacy.
2.3 Fiscal Instruments for Low Carbon Financing
in Cities
The bottleneck faced by the local governments in financing low
carbon growth may be alleviated through reform and innovation
of fiscal and financial instruments. This section focuses on how the
existing fiscal instruments of China can help local governments fund
low carbon growth in a better way. It will place emphasis on two
aspects: (i) the reform (greening) and innovation of the existing fiscal
instruments, which explore viable low carbon financing available to
the local governments in view of the types of fiscal policies; and (ii) the
management of the existing fiscal revenue and reform of the existing
distribution policies (including the fiscal expenditure of the Central
and local governments and transfer payment, etc.), which deals with
the low carbon financing from the perspective of the efficiency and
direction of the use of the fiscal revenue.
The former aspect aims to increase the funds available for low
carbon growth, while the latter aspect can not only increase such
funds, but also improve the efficiency of its use. As fiscal instruments,
both aspects can effectively provide additional, stable, and effective
funds for the local governments in their low carbon growth strategy.
Chapter 2 Innovative Financing for Low Carbon Development 85
